Correlation Between Mednax and Hims Hers
Can any of the company-specific risk be diversified away by investing in both Mednax and Hims Hers at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Mednax and Hims Hers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mednax Inc and Hims Hers Health, you can compare the effects of market volatilities on Mednax and Hims Hers and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Mednax with a short position of Hims Hers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mednax and Hims Hers.
Diversification Opportunities for Mednax and Hims Hers
Very poor diversification
The 3 months correlation between Mednax and Hims is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Mednax Inc and Hims Hers Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hims Hers Health and Mednax is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Mednax Inc are associated (or correlated) with Hims Hers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hims Hers Health has no effect on the direction of Mednax i.e., Mednax and Hims Hers go up and down completely randomly.
Pair Corralation between Mednax and Hims Hers
Allowing for the 90-day total investment horizon Mednax is expected to generate 1.17 times less return on investment than Hims Hers. But when comparing it to its historical volatility, Mednax Inc is 1.74 times less risky than Hims Hers. It trades about 0.16 of its potential returns per unit of risk. Hims Hers Health is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,138 in Hims Hers Health on August 24, 2024 and sell it today you would earn a total of 277.00 from holding Hims Hers Health or generate 12.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mednax Inc vs. Hims Hers Health
Performance |
| Timeline |
| Mednax Inc |
| Hims Hers Health |
Mednax and Hims Hers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mednax and Hims Hers
The main advantage of trading using opposite Mednax and Hims Hers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mednax position performs unexpectedly, Hims Hers can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hims Hers will offset losses from the drop in Hims Hers' long position.| Mednax vs. Acadia Healthcare | Mednax vs. Select Medical Holdings | Mednax vs. Universal Health Services | Mednax vs. Prestige Brand Holdings |
| Hims Hers vs. ELF Beauty | Hims Hers vs. Newell Brands | Hims Hers vs. Virgin Group Acquisition | Hims Hers vs. Estee Lauder Companies |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |